The mobile phone market in Goa is shrinking. Even as the number of shops since 2000, have mushroomed from 10 to nearly 400 in Goa but the sale from across the counter is gradually depleting as the online market has bulldozed it. On an average, many mobile phone stores in Goa have reported at least 20 to 40 per cent drop in their sales. They are finding it very difficult to sustain themselves and retain their customer base.
Suraj Singh a senior executive with a well-known private firm in Goa, believes that for a mid-range phones online shopping is best. “For a mid-range phone, I get more choice and better price on the Net rather than in a store. But yes, if I have to buy a high-end phone then I will prefer to buy it from a store as I will get the assurance of after sales service. Normally, if you buy online stuff, there is always a risk and to some extent an uncertainty to get after sales service,” he added.
Ketan Tuteja, business head of Roopsi Exports in Goa says that, “Shelf life of a mobile is nearly two years and I am willing to take the risk of buying it online. It is comfortable and I get a better deal and pray that the product delivered to me is fine and durable. In fact I am now going to buy an I-Phone from online portal as the price available is about Rs 49,000 as compared to Rs 54,000 in a store in Goa.” He added that these online portals nowadays are even prepared to exchange your phone in case one receives a defective product.
Director of Jamsons, Muzaffar Kadri who has a chain of mobile stores in Goa, is candid enough to say that the mobile phone business in Goa is not doing well. “The market dynamics in not favourable to us. Mining in Goa was banned and there was virtually no circulation of money in the market. Rise in Online sales is another challenge. Online purchase has affected us by at least 40 to 50 per cent. It is really difficult to survive in this market, unless one is prepared to diversify and take quick smart decisions,” Mr Kadri, who is an authorized dealer for Apple, Dell, Lenovo, etc in Goa, said.
Mr Kadri added that the VAT in Goa is to the tune of 5 per cent of the mobile phones priced below Rs 12000 and 12.5 per cent on the phones which are priced Rs 12000 and above.
Proprietor of Pacific, Lyndon Remedios Furtado who has the experience of 15 years in the industry is peeved with the online market. “Local government in Goa does not benefit from the transaction made online and these online business is operated from States where VAT is less than that of Goa, for example Karnataka, Tamil Nadu etc. Yes, our business has been affected to the tune of 20 to 30 per cent by online purchase.” He mainly deals with all brands but his major share is on Samsung. “Samsung does not supply their products for online sales, neither do they entertain or encourage online sales,” said Mr Furtado.
Questions were raised by Mr Furtado on the tax structure of online sales. “Online market plays on VAT and operate from those States which have lower rates and try to pass on this benefit to the customers by making the product cheaper. They do gain on the volume of sale and their commission from the manufacturers,” added Mr Furtado.
Proprietor of Little Collection, Yatin Parekh, however is upbeat on his business. “Individuals are looking for all sorts of brands. Every second day there is a new brand entering the market, and so it is becoming a competitive market and this is not just between brands but also amongst mobile stores. I believe that 20 to 30 per cent of our business has been affected by online shopping. However, there are two segments of customers; one that believes in personal touch and better after sales service and the other that believes in lesser price that one can get online,” added Mr Parekh.
To retain customers, all mobile stores have some offer or the other as consumers now look for something extra if the prices cannot be lowered. Nearly all of them are concentrating on good after sales service and good attractive schemes which ultimately justifies the saying that “Consumer is King.”
